On-Premises Software

What Does On-Premises Software Mean?

On-premises software is a type of software delivery model that is installed and operated from a customer’s in-house server and computing infrastructure. It utilizes an organization’s native computing resources and requires only a licensed or purchased copy of software from an independent software vendor.

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On-premises software is also known as shrink wrap.

Techopedia Explains On-Premises Software

On-premises software is one of the most common, traditional methods of using enterprise and consumer applications. On-premises software typically requires a software license for each server and/or end user. The customer is responsible for the security, availability and overall management of on-premises software. However, the vendor also provides after sales integration and support services.

On-premises software is more expensive than on-demand or cloud software because it requires in-house server hardware, capital investment in software licenses, in-house IT support staff and longer integration periods. However, on-premises software is considered more secure, as the entire instance of software remains on the organization’s premises.

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Margaret Rouse
Technology Expert

Margaret is an award-winning technical writer and teacher known for her ability to explain complex technical subjects to a non-technical business audience. Over the past twenty years, her IT definitions have been published by Que in an encyclopedia of technology terms and cited in articles by the New York Times, Time Magazine, USA Today, ZDNet, PC Magazine, and Discovery Magazine. She joined Techopedia in 2011. Margaret's idea of a fun day is helping IT and business professionals learn to speak each other’s highly specialized languages.